Under Armour downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Under Armour to Underweight from Equal Weight with a price target of $4, down from $8, as part of a broader research note on Branded Apparel and Footwear. The company’s customers’ next-12-months propensity to spend screened in-line with its major sportswear peers, but its brand momentum ranking was “notably worse” in popularity, loyalty, and change in past 12 months spending, resulted in an aggregate ranking that was below its competitors, the analyst tells investors in a research note. Morgan Stanley adds that it sees a potential for valuation de- rating for Under Armour as challenged fundamentals and lack of near-term catalysts become more appreciated.